27 December 2018

Universal Social Charge (USC)

Tax and Duty Manual Part 18D-00-01, which describes the operation of the Universal Social Charge, has been amended to reflect provisions in Finance Act 2018.  The manual has been updated in the following paragraphs:

  • Paragraph 4 – updated for 2019 USC rates and bands, with examples.
  • Paragraph 4.2 – Week 53. Finance Act 2018 introduced a technical amendment to section 531AN whereby increased USC rate bands will not be available where a week 53 pay day is not a normal pay day.
  • Paragraph 5 – Finance Act 2018 introduced a new monthly USC reporting requirement for employers.
  • Paragraph 12 - updated to include references to sections 128F and 194AA in the list of USC exempt income and to remove old references to Social Welfare-Like payments no longer in place.
  • Paragraph 18.3 – to provide greater clarity, the 5% USC property relief surcharge examples have been reworded.  There has been no recent change in practice or legislation to this provision.